The streamer wanted more podcasts fronted by the pair due to their star power, while the couple were pushing for a more diverse range of voices.
Higher Ground has produced five shows for Spotify including "The Big Hit Show", which was one of its only programmes that didn't feature a member of the Obama family.
Higher Ground is now in discussions with the likes of Amazon's Audible and iHeartMedia as it seeks to produce several shows and release them on multiple platforms at the same time. The company wants to secure a new partner within the next few weeks.
Meanwhile, Swedish giant Spotify reportedly declined to make an offer. The company may have chosen not to renew because if the Obamas chose to sign a non-exclusive agreement elsewhere, then their podcast could still end up on the service.
Such a departure would mark a further blow to Spotify after the service was drawn into a row over its superstar podcaster Joe Rogan, who was accused of touting vaccine misinformation.
Chief executive Daniel Ek's decision to stand by Rogan prompted ageing rockers Neil Young and Joni Mitchell to pull their songbooks from the service.
Companies like Spotify and Amazon have sought to pursue exclusive rights to promote their own services.
The Obamas first signed a deal with the music streaming giant in 2019 as they focused on future business ventures after their presidency.
Spotify has spent hundreds of millions of dollars to work exclusively with some of the most popular podcasters, including Joe Rogan and Bill Simmons.
